Claims Against Directors

Directors of companies can be made personally liable. The general rule is that if you have a contract with a company and the company goes into liquidation, you cannot pursue the director personally if the company has no money to pay you . The liquidator pays himself from any recovery first often leaving very little money to pay creditors who are to share any recovery on a percentage basis according to the value of what they are owed.

However, there are exceptions when creditors can go after directors personally to recover their loss.

We can help you pursue and recover from directors personally.

We help owners and creditors pursue builders and directors of construction companies when the company has folded and gone into liquidation to recover monies from the directors personally.

A director or non-executive director may become personally liable if –

• The director entered into a contract and did not make it clear that he was doing so on behalf of the company
• The director made representations that he would be personally responsible
• The director made fraudulent or negligent misrepresentations in the course of negotiating a contract
• The director made a false statement as to the affairs of the company with the intent of deceiving shareholders or creditors of the company – s.19 the Theft Act 1968
• The director dishonestly made representations which were untrue or misleading when he ought to have known this when making those representations - Fraud Act 2006
• The director continued to trade after it became clear that the company could not pay its debts to supplies and creditors and worsened the company's finances – the directors then open themselves up to claims for wrongful trading against them personally and they could be disqualified from acting as a directors again
• The director is defrauding creditors

It is important you act quickly especially as we may need to freeze assets.